Bybit's CEX Market Share Plummets Due to Hacking Fallout, Drops Out of Top Three

# Bybit Loses Market Share in Wake of $1.4 Billion Hacking Incident Digital asset exchange Bybit has seen a significant decline in market share following a $1.4 billion hacking incident, causing it to drop out of the top three centralized exchanges (CEX) by market share. On October 10, on-chain analytics platform Kaiko reported that Bybit's market share had decreased by over 60% since the hacking event. Bybit's share of centralized exchange trading volumes peaked at 32.04% on September 15 but plummeted to 9.04% by October 9. The exchange was particularly hard hit outside the United States. Prior to the hacking, Bybit had maintained the second-highest trading volume after Binance, consistently holding over a 25% market share. However, as of October 9, its share had fallen to 10.57%. Conversely, Bybit's decline has coincided with a rise in Binance's market share. Binance, which held approximately 50% market share before the hack, has increased to over 60%. On February 23, shortly after the hacking incident, Binance's share of trading volume soared to 70.5%. Both OKX and Coinbase also saw slight increases in their market shares. Despite the decline, Bybit's market share began to rebound after hitting a low of 5.44% on October 2. Analysts believe Bybit's crisis management positively impacted user trust. Bybit did not suspend withdrawals and actively communicated the situation in real-time, which helped retain user confidence. However, the process of recovering the stolen funds has been sluggish. As of now, only $43.71 million—or approximately 3%—of the $1.4 billion has been recovered. Blockchain security firm Elliptic estimates that hackers have already laundered at least $300 million of the stolen funds.